Toby is saved from drowning by the ghost children who haunt the Hotel Dante, and they continue to follow him. Van and Toby realize that the children are telling them that someone tried to kill Toby -- the same someone that killed them in 1954!
Van’s growing powers attract Grace’s attention. Grace comes looking for her at the Hotel Dante, which she still owns as an absentee landlord. Discovering Van’s paintings and learning that Van possesses one of the two Tresum books – the Book of the Moon – Grace realizes that the newcomer is a possible threat to her. When the older witch challenges her, Van is able to defend herself, but her girlfriend Michelle witnesses the magical battle and storms out. Michelle hates all things supernatural.
Kevin gets a new job working construction at the hotel for local fixer Kai. Toby starts work at H2Eau, newcomer Marco Laveau’s classy new beach bar. Ambrosius meets Adam and they become friendly. Ambrosius gets a new look and a new moniker, as he starts going by the name "Bro." Bro and Kevin get a fresh start, meeting as 'strangers' in H2Eau.
Toby, determined to find out who tried to kill him, follows Cory and finds Ambrosius. The episode ends in a cliffhanger at Ambrosius' new pad, with Cory's and Toby's lives hanging in the balance.
Van arrives at Bro's pad just in time to save Toby's life. Her new magical powers aren't controlled, but they're strong! She sends Ambrosius and Cory out to sea, presumably to their deaths. But at Cory's funeral, Ambrosius shows up, very much alive.
Freaked out over Van's witch power, Michelle issues an ultimatum: leave the island with her or they're through. Desperate to have Michelle back, Van casts an amnesia spell on her. But the spell backfires and Michelle winds up with no memory of Van at all. Her lover has become a stranger. The next thing Van knows, Michelle is making out with hard-bodied scuba instructor, Brit.
Meanwhile, there's a new woman in town, Diana Childs. Ambrosius recognizes her -- there's more to this sexy newcomer than meets the eye. She's Bro's teacher, and a powerful practitioner of Tresum.
Kevin's flirtation with Ambrosius continues. When Toby tries to warn Kevin that the guy is a dangerous warlock, Kevin dismisses the warning as jealous fantasy. Ambrosius, for his part, is determined to win Kevin over -- not only out of love and lust, but because he needs Kevin to become his sworn Aspirant in time for the upcoming Solstice.
Overwhelmed by nascent powers she can't control, Van convinces Grace to take her on as a student. With Grace's help, Van tries to protect Kevin from Ambrosius' magic. But when Kevin goes off for a tryst with another man, it becomes clear that Kevin's problems in his relationship with Toby stem from Kevin, not from any magic. The episode ends with Toby telling Kevin to move out.
Toby and Kevin go on a camping trip to work on their problems. Kevin can't bring himself to open up to Toby, and their relationship looks like it may be ending, until Kevin finally finds the strength to tell Toby how he really feels.
Adam goes looking for drugs and finds Colin's underground sex club. Under the influence of the strange local drug Saint, Adam starts to admit his true self. With Bro's help, Adam finds Saint growing wild in the woods, around an old abandoned spring. Bro has followed Adam to the spring, and challenges him to say what he wants. Adam gives in to his attraction to Bro, and goes home with him for a night of abandon.
Although Van doesn't get along with newcomer Diana, she finds herself sketching her, almost unwillingly. Grace sees the sketches and finds out Diana is in Dante's Cove. When Grace confronts Diana, we learn that the two are actually sisters -- and sworn enemies.
Michelle suffers from increasing instability as her memory tries to resurface.
As the stories and the characters intertwine, the surge of sexual energy brings about a surge of magical energy as well, and waves of both break over the sleeping Van. She awakes to find herself lying on the beach in the middle of the night, with Diana standing mysteriously over her.
Van discovers Diana is a Tresum witch, and Diana explains to Van the true importance of the upcoming Libra Solstice – Bro and Grace will be vying for the power to alter one event of the past.
Devastated by Michelle's suicide, Van is determined to find a way to put it right and bring Michelle back -- even if it means submitting her will and her power to Grace.
As a big storm looms, a couple of hunky guys show up on the Island for a bachelor fling. One of them is Derrick, Kevin's first boyfriend -- who's now getting married. Still not out to his friends from home, Kevin tries to play it straight -- much to Toby's annoyance. Then, the approaching storm traps them all in the Hotel Dante together. When the love charm embedded in Grace's old porcelain doll is accidentally reactivated, the characters wind up in various unlikely pairings. Kai and Marco share a night of wild abandon. Derrick tries to rekindle things with Kevin, but Kevin is finally ready to stay true to Toby. Ambrosius, planning to use the charmed doll on Kevin, first tries it on Toby, making him fall for Adam. But Toby's love for Kevin is stronger than the old love charm, and he breaks free of its influence and destroys the doll before Bro can turn it on Kevin.
Furious, and with no other way to get Kevin to swear allegiance to him for the Solstice ritual, Bro kidnaps Toby. Kevin trades himself for Toby’s freedom, becoming Ambrosius' willing Aspirant.
The two Avatars, Grace and Bro, meet at the magic Spring at Solstice dawn to battle for the Libra Power. Van and Kevin’s powers are dangerously drained in the battle. Once Grace and Bro have been weakened by their fight, Diana steps in to claim the final prize! This was her agenda all along – to train Bro to make him as strong as Grace, so they would cancel each other out and she herself could claim the power. In a last-ditch plea, Van convinces Diana that her plan for revenge won't repair the damaged Tresum -- that only giving life can stop the cycle of violence. Diana steps aside and allows Van to claim the Libra Power, which Van uses to save Michelle. Van has finally learned that love means putting the needs of another first.
Michelle goes back to Iowa to recover, leaving open the question of her future. Our trio of heroes is about to celebrate, when suddenly Ambrosius steps into frame to remind Kevin that he willingly swore service to Bro. Toby and Van are unable to do anything as Ambrosius claims his prize, taking Kevin away with him.